On September 10, 2021, the California Department of Tax and Fee Administration (the CDTFA) proposed amendments to the CDTFA’s regulations governing drop shipments, in an effort to clarify that marketplace sales are not drop shipments. In October 2019, the California Marketplace Facilitator Act became effective, making marketplace facilitators the seller and retailer for sales facilitated

On September 2, 2021, the Colorado Department of Revenue issued private letter ruling PLR 21-005 concluding that subscription fees for an online learning platform are subject to sales tax. The taxpayer operates an online learning platform offering on-demand digital courses comprised of streaming video lessons covering academic subjects and vocational license preparation courses. Each subscription

The Washington Department of Revenue recently released informal guidance regarding the taxability of online instructional classes. The guidance states that live classes where participants can interact in real-time with the presenter are not subject to sales tax; however, pre-recorded videos and classes are subject to sales tax. This distinction focuses on the live ability to

On August 31, 2021, the Maryland Comptroller filed proposed regulations on the controversial digital advertising gross revenues tax (the DAT) with the Joint Committee on Administrative, Executive, and Legislative Review. Of primary interest to potential DAT taxpayers, and described in this Legal Alert, the regulations adopt a device-based apportionment fraction. The comment period for the

Apple recently appealed an Ohio Commercial Activity Tax (CAT) assessment, alleging that the Department of Taxation improperly treated receipts from sales made through its app store as Apple’s receipts for purposes of determining its tax base under the CAT.  Ohio law allows agents to exclude gross receipts (other than commission) from the agent’s CAT base.

Effective August 6, 2021, Illinois amended its unclaimed property law to include cryptocurrency. SB 338, Public Act 102-0288, was approved by the Governor and became law the same day. Under the unclaimed property law, “virtual currency” is presumed unclaimed after 5 years of no indication of interest by the apparent property owner. The new

On August 10, 2021, the Hawaii Department of Taxation issued Tax Information Release No. 2021-06, clarifying the treatment and taxability of software sales under Hawaii’s general excise tax (GET). According to the Information Release, the sale of prewritten software is considered the sale of taxable tangible personal property regardless of whether the software is

In Revenue Ruling 2021-001, the Alabama Department of Revenue ruled that IT services provided by a foreign company with no physical presence in Alabama are not subject to sales tax. The foreign company provided an information technology system remotely to an Alabama production plant. Although the company provided these services remotely, it would also

The Multistate Tax Commission (MTC) adopted its long-awaited guidance interpreting Public Law (P.L.) 86-272 protections for internet businesses on August 4, 2021. P.L. 86-272 was passed by the U.S. Congress in 1959, and protects businesses from the imposition of state income tax when the business’s only activity in the state is the solicitation of orders

The Mississippi Department of Revenue proposes to amend its regulation for Photographers and Film Developers to specify that certain digital products would be subject to sales tax. Under the proposed regulation, photographs, pictures, videos, discs, other tangible personal property and “specified digital products” sold by photographers and videographers are taxable. The proposed amendments would be